Eligibility requirements:
- Self-financing of 1 million forints
- Available for the modernization of residential buildings built before 1990 with gas connection.
- It is recommended to obtain the occupancy permit as proof. If not available, a copy can be requested from the building authority. The presence of the building can also be verified on the official cadastral map. The map copy can be viewed in person at the land office or online, for a fee of 3,000 HUF on the foldhivatal.hu website.
Modernization options and budget:
- The budget for modernization can be a maximum of 7 million forints.
- Supported works: insulation resulting in 30% energy savings, replacement of windows and doors, replacement of water and heating systems. It is recommended to order the preliminary energy performance certificate as soon as possible, as professionals will be under significant workload in the coming months. The acceptable timeframe is not yet known, but it is likely that a certificate issued half a year earlier will also be accepted. The cost of the preliminary certificate is approximately 30-40,000 HUF, and another certificate will be required after the modernization is completed, which entails additional costs.
Loan uptake and non-refundable support:
- Taking out a loan is essential! The loan amount of 7 million forints can be requested for a period of 8 years, interest-free. The monthly installment is expected to range between 26,000 and 36,000 forints after utilizing the support.
- The non-refundable support amount can range from 2.5 to 3.5 million forints, which can be requested after the completion of the modernization. The support can be requested before the budget is exhausted. Banks will inform the Hungarian Development Bank (MFB) about the progress based on the accepted loan applications, and further communication about additional application opportunities will depend on this.
- Based on experience, it is possible that some may exceed the budget, and we cannot predict the interest rate at which their loan will continue. If the loan remains interest-free but without support, the monthly installment is expected to be around 73,000 forints. It is important to consider this before modernization. Personalized calculation of the conditions will be necessary for future decisions.
- The amount depends on the average income available in the district, for example: Where the district’s average income reaches 110% of the national average, the non-refundable support will be 2.5 million forints, between 75% and 110% it will be 3 million forints, and for districts with income below 75% of the national average (63 districts), it will be 3.5 million forints. The Central Statistical Office (KSH) has only published one image on this subject, which we have attached.
- Based on this, it can be seen that, for example, in Fejér County, the expected amount of non-refundable support will be 2.5 million forints in the Székesfehérvár and Polgárdi districts, 3 million forints in the Bicske, Martonvásár, and Dunaújváros districts, and either 3 or 3.5 million forints in the Sárbogárd and Enying districts.
- The average income in 2023 according to the KSH is 621,200 forints. 75% of this is 465,900 forints, and 110% is 683,320 forints. Therefore, it is uncertain where the Sárbogárd and Enying districts will be classified due to their income of 450-500,000 forints.
Suggestions, tasks:
- It is not necessary to necessarily raise a minor child in the property.
- It is advisable to register your residence as soon as possible.
- To find a contractor, request quotes, and prepare a construction schedule.
- The work can be started at the earliest in August, invoices issued after the disbursement of the loan agreement will be accepted.
